With more than 14% of every home in America 30 days late or in the process of foreclosure, why is there not more REO homes available for sale? There seems to be incentive by the big banks to keep these bad loans on the books. Could it be the creative accounting and reporting the big boys are allowed to do is actually incentivizing them to hide inventory and distort values in order to keep from having to pay back those leveraged positions they have with the treasury? With the outcry against the low doc, liar loans and cheap money that has been blamed for the housing bubble, why don’t we see more frustration against the fed doing the same thing for the banks. With the new mark to fantasy reporting banks can value properties at any fictitious future value, they can leverage those values to borrow up to 30 times from the treasury. Why on earth would they want to sell the property and have to realize the actual value then have to pay back all that free money? I think we are going to be waiting along time before the majority of those bad assets actually make it to the streets, well at least until our leaders can find a way to profit even more from it. Things that make you go hmmm.
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